Bluerock Value Exchange Launches $31.6M Industrial DST
Bluerock Value Exchange (BVEX), a unit of alternative asset manager Bluerock, announced the launch of its latest 1031 exchange/DST offering, BR Diversified Industrial Portfolio IV, DST (DIP IV), aiming to raise about $31.6 million from accredited investors.
DIP IV is BVEX’s 37th individual DST offering, and fourth sequential industrial-focused DST program.
The unlevered offering includes a two state (South Carolina, Tennessee), three property, industrial sector portfolio comprised of approximately 200,000 square feet of combined warehouse and distribution properties which are 100% leased to four mixed-use industrial tenants.
BVEX believes DIP IV represents “an attractive investment opportunity in an already assembled diverse portfolio located in desirable high growth sunbelt market locations.”
The DST aims deliver stable monthly cash flow to investors through long-term triple net leases and the potential for capital gain due to high demand for industrial properties coupled with the ability to drive future rent and net operating income (NOI) growth with current rents substantially below (approximately 20% on average) market rates.
“The industrial sector is poised to deliver best-in-class rent and NOI growth amongst all major commercial real estate sectors due to long-term e-commerce and manufacturing demand tailwinds driving demand within the sector,” said Josh Hoffman, president of Bluerock Value Exchange.
Bluerock has structured 1031 exchanges of over $2.6 billion in total value and 13 million square feet of property.
In February, BVEX announced its 36th offering – BR Diversified Industrial Portfolio III DST. The offering aims to raise about $41 million